WATERBURY — Elderly homeowners earning less than $41,600 a year could get a $150 property tax break under a proposal going to the Board of Aldermen this month.

Mayor Neil M. O'Leary wants to create a local tax relief program for homeowners who are at least 65 years old that would essentially offset his proposed 2-mill tax rate increase.

"These are our most dedicated taxpayers, the people who have made this city great, and they are fighting to stay in the houses they have worked for all their lives," O'Leary said. "We owe them."

O'Leary began searching for a way to help local seniors survive his proposed tax increase after a 91-year-old man approached him at church last weekend and talked about its impact on his life.

The retired Marine told O'Leary that he has to make ends meet on about $400 a month.

Every dollar of the tax increase would have to come out of his grocery money, he told O'Leary.

He is far from alone. State records suggest there are at least a thousand others like him, and probably more, in the city who qualify for the property tax credit O'Leary wants to offer.

"These are the people we want to keep in our neighborhoods," O'Leary said. "Right now, they are out sweeping the sidewalks and planting Easter flowers. They are the lifeblood of this city."

O'Leary's proposed 2-mill tax increase would cost the average single-family homeowner, who lives in a house worth $122,600, an extra $170 a year, for a total property tax bill of $5,061.

City officials think that many of the city's low-income elderly and disabled live in homes worth less than that, and pay less in property taxes, which would mean the local credit would negate the tax hike.

This program, which requires aldermanic approval, mirrors one already offered by the state, which gives the low-income elderly and disabled a $250 to $1,250 local property tax break.

Many of those eligible would actually pay less in taxes next year after applying both the city and state property tax credits, according to Kevin DelGabbo, O'Leary's senior adviser.

In the 2013-14 tax year, 1,272 city residents received that state elderly or disabled credit on their city property tax bill, he said. The state reimbursed the city for the $800,758 in deferred taxes.

City officials predict the number could grow to about 1,500 after the city enacts its own local tax credit program and publicizes it. At that rate, the program would cost the city $225,000.

That wouldn't be a problem this year, O'Leary said. The city has learned it will probably receive another $400,000 in state PILOT, or payment in lieu of taxes, funding in the 2014-15 fiscal year.

The city doesn't want to increase the size of the local elderly tax credit even though it predicts it will have money left over because it doesn't know how many people may qualify to participate.

Any money left over would be added to city revenues and offset the tax increase for all residents. That amount spread out over all of the city taxpayers would result in a negligible savings, though.

But in the future, O'Leary admits that other residents would have to shoulder the burden of the taxes deferred by qualified elderly and disabled homeowners if the board enacts his proposal.

He is still running those numbers, but he predicts its tax impact on others would be negligible, probably no more than $20 a year, if that. He is betting that most people would be happy to pay it.

Board President Paul K. Pernerewski Jr. agrees, O'Leary said. Earlier this week, Pernerewski came to him with concerns over the tax increase and how it would affect local seniors.

More than half of Connecticut's towns and cities offer a similar local elderly and disabled tax relief program, according to a 2008 legislative research report.

Waterbury offered a local elderly and disabled tax credit briefly, to abate a large tax increase enacted when the state first took over the city's finances to fend off bankruptcy a decade ago.

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Janet Emerson wrote on Apr 10, 2014 12:21 AM:

" I promise that i will not take my pension!!! Vote for me!!I promise that I will not rise the taxes!! Vote for me!!

Glad I did vote for this guy!!Worst major ever more to come!By the way where is Jarjura??Come back!! "

" Gee mayor- THANKS A LOT - you are so helpful.I'm sure the elderly will be there when you run for mayor again. By the way- how are you doing with your salary and $100.000.00 pension. Must be hard for you, since your taxes will be going up too.Maybey, you can get a part time job in Wolcott again.QUITE FRANKLY- I'm sure you'll make out OK!' "

" How about the employed? That's ur most dedicated tax payer. Wheres my discount? The elderly ain't gonna leave this city cuz of taxes that's too much of a hassle, but the young homeowners with young families, that's who's heading for the hills once we have enough money to buy another house. "

" Im looking to buy a house and I was dumb enough to look at houses in waterbury, since im a cash buyer and wont have a motgage I figured it couldnt be to bad then I woke up after seeing what a half acre of property would cost in the fine city of waterbury.needless to say im not moving back to waterbury. "

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